Valmet and Metsä Fibre have signed a preliminary agreement for key technology and automation delivery to the planned Kemi bioproduct mill in Finland

Valmet Oyj’s stock exchange release on April 29, 2020 at 11:00 a.m. EET

Valmet and Metsä Fibre, which is part of Metsä Group, have signed a preliminary agreement according to which Valmet will deliver key technology covering all main process islands and automation systems to Metsä Fibre's planned Kemi bioproduct mill in Finland.

The final agreement is subject to Metsä Fibre's investment decision. Metsä Fibre has announced that the readiness for the decision is expected to be reached during autumn 2020. If materialized, the new bioproduct mill would have an annual pulp production capacity of 1.5 million tonnes and in addition produce various other bioproducts. The production of the new mill is scheduled to begin in 2023.

The estimated value of Valmet's anticipated delivery for Metsä Fibre’s planned Kemi bioproduct mill, covering the core equipment supplied by Valmet, is about EUR 350-400 million. The anticipated delivery will have an important employment impact on Valmet and its subcontractors. The employment impact of Valmet's project delivery is expected to be around 800 man years, out of which about 500 man years in Finland.

”We have set high environmental, material and energy efficiency targets for the Kemi bioproduct mill. Valmet has been able to offer us the technology to reach these targets. Our good and long cooperation with Valmet creates a good foundation for a successful execution of this mill project and for the high performance of the bioproduct mill throughout its whole lifecycle,” says Ismo Nousiainen, CEO of Metsä Fibre.  

“During our long cooperation with Metsä Group and thanks to our successful innovative technology delivery to the Äänekoski bioproduct mill, we have been able to build a strong relationship that has formed an excellent basis for our cooperation also in this new planned project. To be selected as the partner for the entire bioproduct mill technology delivery including also the needed automation is a good sign of Valmet's competitiveness, reliability and technological innovativeness," says Pasi Laine, President and CEO of Valmet.

Details about Valmet's technology delivery to Metsä Fibre Kemi bioproduct mill

According to the preliminary agreement, Valmet will deliver the full production process from wood handling to ready pulp bales designed to produce either softwood or hardwood pulp, as well as automation system for the whole mill including features from Valmet’s Industrial Internet offering. Additionally, the project would include a smaller rebuild of the existing pulp mill.